According to the Zhitong Finance App, Wison Engineering (02236) issued an announcement. It is expected that the Group's losses for the year ended 31 December 2022 will be drastically reduced to no more than RMB 200 million, while losses of approximately RMB 1,197 billion will be achieved for the year ended December 31, 2022.
The expected narrowing of losses is mainly due to the following reasons: In 2022, the company's performance was affected by COVID-19 (COVID-19) and its control measures and restrictions, which led to delays and delays in some projects, as well as additional labor and project costs. The impact of these factors has been reduced this year, and gross margin levels have gradually returned to normal levels; and in 2022, due to an unfavorable economic environment, the recoverability risk of accounts receivable increased and a large amount of impairment losses on receivables was confirmed, but the overall recoverability risk was reduced during the year.
However, the expected loss is mainly due to the fact that projects under construction are still in the early to medium stages. Among them, individual projects involve heavy equipment manufacturing, and delivery is not expected to begin one after another from 2024 to 2025, so the contribution of these projects to this year's revenue and gross profit is limited. As a result, the Group is still expected to lose money in the current year.